Here Is Every Cheap Stock On The OTC
Every Stock Worth Knowing On The OTC Exchange
“Start with the A’s”
- Warren Buffett
In my quest to become a better investor I’ve gone through all 2,144 U.S. companies listed on the OTC exchange. This was a long and arduous process but was worth it since I now have a list of over 200 companies that I’ve done the work to understand and are among the cheapest public companies in the United States.
This list comprises the real companies that are capable of generating a profit and are cheap on the basis of their earnings or assets. In my view, it is every company worth knowing on the OTC exchange.
And at the end, I will tell you what I am actively buying.
This is the first part of what will likely be a four part series so this post isn’t 40 pages long.
There are a few insights I gleaned from this process. Here is one of them:
The OTC exchange holds some of the cheapest stocks in the United States, but they are cheap for a reason
When digging in this part of the market you are completely on your own. There are no analyst reports or Substack writeups to rely on. In many instances the OTC market website itself doesn’t display company financials correctly, so they are wrong on other financial websites too.
This means it is up to you to piece everything together yourself, often from an annual report that doesn’t clearly explain what the company actually does. The process is very time consuming, and many times I wondered whether what I found was really mispriced or if there was a major problem I was overlooking.
Sometimes there was a major problem.
Sometimes the stock really was that cheap.
Before we start, a quick disclaimer: This is not a recommendation to buy any of the stocks mentioned and is for informational purposes only. Included in this list are some of the smallest and most illiquid stocks in the world and you should understand the implications of this. I may own securities mentioned in this article. I may buy or sell any security at any time. This is not financial advice.
Now let’s start with the A’s.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investing involves risk, including the potential loss of principal. The author may own, or plan to purchase, shares in the security discussed. The author is not a registered investment advisor and does not provide personalized investment advice. Always conduct your own research and consider your investment objectives and risk tolerance before making any investment decisions. The author and publisher shall not be liable for any actions taken based on the information provided in this article.
Autoscope Technologies Corp. - AATC
Autoscope makes above-ground camera systems for city and state governments to monitor and control traffic intersections. The company doesn’t sell the systems themselves, instead they license out the technology and receive a royalty every time one of their products are sold. This results in a capital light business with over 25% operating margins. The company pays out the majority of annual free cash flow as dividends.
The company had a poor 2025 due to their distribution partner drawing down inventory as well as Autoscope transitioning to their new AI-enabled traffic cameras. Currently trading for 11x FCF, the stock should do well if sales recover to historical levels.
ACMAT Corp. - ACMT
ACMAT provides surety bonds for the construction industry. Their niche is providing bonding for contractors who would not typically qualify for coverage from conventional surety bond underwriters. The company has historically been extremely conservative, only utilizing a small percentage of their total underwriting capacity. But they are cheap, with a $38M investment (mostly bond) portfolio. Company is currently trading at 0.5x book value.
The company has been an aggressive buyer of its own stock, repurchasing over 80% of its outstanding shares since 1994. There is definitely value here, but the CEO owns 88% of the company, and it looks like he is comfortable maintaining the status quo. Maybe something will happen here someday.
ADM Endeavors Inc. - ADMQ
ADM operates in the Dallas/Fort Worth area, producing custom merchandise and uniforms for businesses, schools, and government. The company generates a consistent profit and recently completed construction of a new facility which will allow them to 5x their production capacity. Last year a major competitor shut down, which provides ADM an opportunity to gain market share. The CEO has also been buying a lot of shares in the open market.
Community Capital Bancshares - ALBY
Community Capital Bancshares owns Albany Bank & Trust, a community bank serving Dougherty County, Georgia. The bank is very conservatively run, with an efficiency ratio under 50% and virtually zero non-performing assets over the past 8 years. They have been able to compound earnings and book value at roughly 10% annually and generate a 15% return on equity, and currently trade just above book value. They also paid out a large special dividend last year.
Amerityre Corp. - AMTY
Amerityre makes polyurethane tires for bicycles, golf carts, lawnmowers, and forklifts. The company had record profits in 2021/21 as demand for these end products boomed, resulting in them building a large cash pile equal to the entire market cap. Even though sales have cooled off the company is able to eke out an operating profit, and demand for these products should start to increase again at some point. CEO has skin in the game with 20% ownership, and the Shelton Core Value Fund owns 25% of the company, meaning there is potential for shareholder activism.
Alaska Power & Telephone Co. - APTL
This company has provided telephone service and electrical power to the people of Alaska since 1957. They have operated quietly in the background for decades, with stable revenues and consistent profits. That is until last year, when the company took on roughly $15M of debt to repurchase 22% of their own shares.
APTL has been investing heavily to build out their broadband and fiber network across Alaska, and also have acquired the majority stake in a subsea fiber cable infrastructure company connecting Alaska to the lower 48 states.
This looks like management is making a bet that the assets are worth more than the market currently values them.
Aztec Land and Cattle Co. - AZLCZ
Starting as a small cattle ranch in 1884, Aztec has grown to become the second largest private landowner in Arizona, owning 240,000 acres of surface land and 320,000 acres of mineral rights. The stock trades at a 1% earnings yield but the real value is in the land holdings recorded on the books at historical cost.
Revenues are derived from solar and wind leases, grazing leases, and mineral rights. The company has recently begun paying a dividend and repurchasing shares.
A potential catalyst is a settlement of Aztec’s water rights, which have been tied up in litigation for close to 50 years. A major settlement was reached in 2024, which is now waiting for congressional approval. If approved, it would grant Aztec protection of their water rights and allow them to lease out their land for higher-value uses. Although I wouldn’t be surprised if this drags on for years before being approved.
Bab Inc. - BABB
Bab owns “Big Apple Bagels”, a group of 61 bagel and muffin shops in the midwestern U.S. The company generates a consistent profit and pays out virtually all FCF as a dividend.
The company does not own the stores themselves, and franchisees pay all upfront costs to open a new location. In theory this model should support continued growth, however store count has declined over the past 5 years.
The management team is all in their 70s, and a good portion of the CEO’s total compensation comes from dividends. It looks like they are content running this as a lifestyle business and not putting much effort into expanding. However the stock is cheap, trading under 6x EV/FCF.
Blue Line Protection Group Inc. - BLPG
Blue Line provides armored cash transportation services to cannabis dispensaries in Colorado. The company has generated a profit each of the last 6 years and has done a good job paying down their debt. The remaining debt is manageable and owed to a board member, which should provide them flexibility if needed. The stock is cheap, trading for roughly 2.5x EV/EBIT.
Disclaimer: I own some shares for fun
Bonal International Inc. - BONL
Bonal is a Michigan based manufacturer of products that provide sub-harmonic vibratory stress relief to metal products during the manufacturing process. Although a tiny business these products are essential to the automotive, aerospace, and mining industries. Stable revenues and trades for 4x EV/FCF. The company was family run for decades, however in 2023 they hired an outside CEO who has an ambitious growth plan. This growth hasn’t come yet, but maybe it will someday.
Blue Ridge Real Estate Co. - BRRE
Blue Ridge Owns over 9,000 acres of land surrounding the Pocono Mountains in Pennsylvania. On this land includes a tavern, fly fishing club, lake club, and 18-hole golf course. The company has been slowly developing and selling land which has led to them building a cash pile equal to roughly half the current market cap. 59% of the company is owned by multibillion dollar REIT Kimko Realty.
The company trades at a large discount to the value of its land, and I’d imagine cash starts being distributed to shareholders at some point.
Boss Holdings Inc. - BSHI
Boss holdings is a distributor of pet supplies and party balloons. The company has been unprofitable in recent years, however they are trading at a negative enterprise value and paid a special dividend for the first time ever this year. An interesting name to watch for signs of a turnaround.
Butler National Corp. - BUKS
Butler National owns an aerospace business paired with a casino. An odd pairing, but the stock has increased almost 400% in the past two years as the aerospace business has shown strong growth. Currently trading at 13x P/E, future catalysts include selling the casino and continued growth of the aerospace division.
Burnham Holdings Inc. - BURCA
Burnham is a manufacturer of boilers, heat pumps, and air conditioning equipment. Despite being a small company, Burnham holds 33% market share for residential boilers. Although the stock has gotten some attention over the past year, it still trades below book value and for ~8x normalized EBIT. This company is a prime target for private equity and would likely sell for a handsome premium.
Beaver Coal Co. - BVERS
Beaver Coal owns a land bank in West Virginia and generates royalties from primarily coal, but also timber, stone, and natural gas. Currently pays ~11% distribution, and royalty income should increase as coal prices have risen nearly 50% over the past year.
J.G. Boswell Co. - BWEL
J.G. Boswell owns the world’s largest privately owned farm, consisting of over 200,000 acres of farmland in California. This land is carried at historical cost meaning the stock trades at a massive discount to its worth. The farm typically generates a modest profit from growing and selling cotton, tomatoes, and grain.
Although the Boswell family has been slow to increase shareholder value, a potential catalyst is monetization of the farm’s water assets, which could likely sell for a multiple of the current market cap.
Bowlin Travel Centers Inc. - BWTL
Bowlin operates ten travel centers along interstate highways in Arizona and New Mexico. The company is profitable most years but has very low margins since most revenue comes from gasoline sales.
The company also owns subdivided real estate lots they are slowly selling off. Gabelli’s GAMCO Asset Management took a 5% stake in the company last year, which may pressure management to start monetizing more of their assets.
Chesapeake Granite Wash Trust - CHKR
Chesapeake Granite is a trust which earns royalties on its owned oil and gas properties in Oklahoma. Most royalties are derived from natural gas sales. The trust yields 15-20% annually but reserves are declining and the trust is obligated to dissolve in 2031. This is essentially a bet on short-term natural gas prices.
CompuMed Inc. - CMPD
CompuMed provides diagnostic telemedicine services to organ donor networks and correctional facilities. These customers have stable recurring demand leading to CompuMed growing revenues at a double digit rate over the past decade. Heavy depreciation of medical EKG machines obscures the financials but is currently trading below 10x normalized FCF.
A potential catalyst of the company is continued adoption of its “MOSAiC” software, which makes it easy for organ donor networks to create a database of organs and transplant patients, which reduces time required to perform a transplant. There is no software like this currently on the market, and the organizations using the software have reported quantifiable improved transplant outcomes.
Conair Corp. CNGA
Conair is an HVAC business operating in New York. The company earns a consistent profit (although lost money in 2025), and has $3.2M in cash and securities on a $2.1M market cap. 80% of company is held by insiders. Wouldn’t be surprised if this gets sold at some point.
Capital Properties Inc. - CPTP
Capital Properties owns 18 acres of prime land in downtown Providence, RI and leases this land under triple net, 99 year ground leases. No debt. Consistently grows revenues and earnings 8-10% annually. Stock trades for over 30x FCF which certainly isn’t cheap but ground leases are probably the best business model on earth. Pays 2% dividend.
A potential catalyst is the company generating new leases for its remaining six undeveloped parcels in downtown Providence.
CreditRiskMonitor.Com Inc. - CRMZ
Credit Risk Monitor provides B2B credit monitoring software. The company generates stable cash flows and is countercyclical since demand for this service increases during recessions.
However, capital allocation has been pretty awful for a long time. The company holds so much cash that interest income nearly matches operating income. The founder and his son (current CEO) are convinced an extreme depression is coming to the United States and are adamant on not paying a dividend or repurchasing shares until this occurs.
The stock currently trades for roughly 8x EV/FCF. In my view the downside here is low and you get a free call option on the cash pile being distributed, but the upside is probably not great unless the U.S. falls into a recession.
Currency Exchange International Corp. - CURN
Currency exchange operator. It looks cheap with $95M in cash on a $115M market cap, but it has been unclear how much of this cash is inventory for its physical locations vs. how much is truly excess. Trades for roughly 10x earnings, which appears fair for this type of business.
Crimson Wine Group Ltd. - CWGL
Crimson Wine Group sells luxury wines and owns vineyards in California and Oregon. Currently trades at 56% of book value, with its land likely worth significantly more that it is carried for on the balance sheet.
This probably gets sold eventually, but Jeffries Financial management owns 30% of the shares and there is no incentive to get anything done quickly.
Decker Manufacturing Corp. - DMFG
Decker makes industrial fasteners and pipe plugs primarily for automotive manufacturers. They have shown strong revenue growth since 2020 and holds a nice stock portfolio on the balance sheet. They also write one of the most thorough annual reports of any OTC listed company.
Currently trades for around 10x EV/FCF and pays 6% dividend. I would love to own this at a lower price.
Dental Patient Care America Inc. - DPAT
I wrote about this stock back in February. DPAT is a Utah-based dental cooperative that helps independent dentists reduce operating costs for their practices. The core cooperative business grows revenues at single digit rates and typically operates around breakeven. In 2022, they launched a service that helped dentists file for the Employee Retention Credit. This led to record profits for the company and resulted in a cash pile that dwarfed the market cap.
Although the stock is up 150% since my writeup, the stock still trades at only 50% of the cash on its balance sheet. Since my writeup, there is a new CEO who owns 20% of the company and moved the entire cash balance into equities.
I still think this is way to cheap and it looks like we now have a CEO who will care about the stock price for the first time in decades.
Disclosure: I own shares of DPAT
Detroit Legal News Co. - DTRL
Detroit Legal News publishes local legal and real estate newspapers. The company has a long operating history being founded in 1895. This is a stable business and pays out the majority of FCF as a dividend each year. Currently trades for around 7x EV/FCF, which looks reasonable.
Eaco Corp. - EACO
Eaco is a distributor of small electronic components and fasteners. They operate as a value-add middleman between large manufacturers and OEMs. Have been growing revenue and earnings at double digit rates. The stock has doubled over the past year and currently trades at 14x earnings.
ENDI Corp. - ENDI
Endi owns a fixed-income asset manager who is rapidly growing AUM. A hedge fund holds a controlling stake which makes this interesting. Trades around 7x earnings net of cash.
Environmental Tectonics Corp. - ETCC
Environmental Tectonics is a manufacturer of high-tech systems for aerospace training and simulation, such as human centrifuges, spatial disorientation trainers, and hyperbaric chambers. Revenues have been growing rapidly and the stock trades for 7x EBIT.
However there are challenges with this business. The customer base is concentrated and consists entirely of governments, who only pay once a contract is completed. This creates working capital pressures that have led to increasing debt levels. Capital expenditures also account for the majority of OCF.
First Acceptance Corp. - FACO
First Acceptance is an auto insurer that specializes in underwriting policies for non-standard (risky) drivers. This looks like a dangerous business to be in but management has a strong track record and has done a good job growing premiums while remaining profitable. Currently trades at 7x earnings and just under book value.
Ferrellgas Partners, L.P. - FGRP
Ferrellgas is the second largest propane distributor in the United States. This setup is one where we have a great business and awful capital structure. The company is highly levered at 4.5x debt/EBITDA, and there are concerns about meeting liquidity needs in 2026. In addition, the preferred units and class B units receive the majority of distributions.
This means common shareholders are betting on a refinancing, debt reduction, and simplification of the capital structure. Maybe there’s some upside here but its a very messy situation. Trading for 7x EV/EBIT.
First Hartford Corp. - FHRT
First Hartford is a real estate developer that has been operational since 1909 and is controlled by the Malkin family. They develop commercial and multifamily properties as well as ground up projects and are a preferred developer for major chains such as CVS and Cumberland Farms. The company trades slightly below my NAV estimate and at roughly 10x normalized earnings.
Here is where it gets interesting. Over the past year, the company has been transitioning to a partnership model for new developments, where they bring on large institutional partners to put up the capital while First Hartford earns developer fees and long term management fees. From an investment standpoint this is a more attractive business model compared to traditional development due to the recurring revenue and asset-light nature of the business. Over the past year partnerships have grown to be 20% of the company’s total assets, and if new projects continue at this pace it won’t be long until the majority of assets are operated under this partnership model, which could result in a rerating of the stock in line with its improved earnings power.
Disclaimer: I own shares of FHRT
First Real Estate Investment Trust of New Jersey Inc. - FREVS
FREVS owns and operates strip malls in New Jersey. Majority owned by the Kushner family. After announcing a plan to liquidate in 2020, the company finally approved a plan of voluntary liquidation last month. Management expects distributions of $24.44 to $30.03 per share on a current $21.48 share price.
Fortran Corp. - FRTN
Fortran sells and installs telephone systems in the Carolinas. The company has been operating at breakeven the past couple of years, and made an acquisition in 2025 that increased revenue by 50%. They generated large gains in 24 and 25 due to roughly half of their total debt being forgiven (from company insiders).
Federal Screw Works - FSCR
Federal Screw Works produces screws and fasteners for the automotive industry. The company has a 108 year operating history and owns lots of land and real estate in Michigan which is carried at $0 on the balance sheet. Company has generated $7M in FCF each of the past 2 years, and is currently trading for roughly 4x EV/FCF.
Looks cheap and the balance sheet gives a large margin of safety but this type of company is dependent on a very cyclical industry.
FullNet Communications, Inc. - FULO
FullNet provides mass notification services to organizations and manages a data center. Holds over a third of the market cap in cash, trading for 6x EV/FCF. Pays a 5% dividend with additional special dividends annually. This is a nice little business at an attractive price. If management wants to sell they could probably get a multiple of the current price.
This list took a lot of time to put together, so if you are still reading please leave a like so more investors will see this!
Next I’ll show you what I am actively buying and the OTC stocks I find most compelling right now.
The following four stocks have all the qualities I am looking for: They trade for a cheap valuation, are growing, and have catalysts to unlock value.
In this section you will find:
An insurance company growing 25% annually, trading for 5x earnings.
A company that sells a critical product to government and law enforcement. They are consistently profitable and have grown revenue and EBIT roughly 10% annually. Last year the company improved production capacity and grew revenue 28%. Trading for only 1.5x EV/EBIT.
An oilfield chemicals company that is poised to benefit from the rise in oil prices and upstream activity as well as an activist that replaced the entire board and management team. Despite these developments, the stock hasn’t moved.
A profitable, rapidly growing company with a product so good the FTC sued them for false advertising… and lost.